Correlation Between PT Techno9 and Wira Global
Can any of the company-specific risk be diversified away by investing in both PT Techno9 and Wira Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PT Techno9 and Wira Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Techno9 Indonesia and Wira Global Solusi, you can compare the effects of market volatilities on PT Techno9 and Wira Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PT Techno9 with a short position of Wira Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Techno9 and Wira Global.
Diversification Opportunities for PT Techno9 and Wira Global
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NINE and Wira is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding PT Techno9 Indonesia and Wira Global Solusi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wira Global Solusi and PT Techno9 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PT Techno9 Indonesia are associated (or correlated) with Wira Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wira Global Solusi has no effect on the direction of PT Techno9 i.e., PT Techno9 and Wira Global go up and down completely randomly.
Pair Corralation between PT Techno9 and Wira Global
Assuming the 90 days trading horizon PT Techno9 Indonesia is expected to generate 2.72 times more return on investment than Wira Global. However, PT Techno9 is 2.72 times more volatile than Wira Global Solusi. It trades about 0.29 of its potential returns per unit of risk. Wira Global Solusi is currently generating about 0.19 per unit of risk. If you would invest 600.00 in PT Techno9 Indonesia on November 28, 2024 and sell it today you would earn a total of 21,800 from holding PT Techno9 Indonesia or generate 3633.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Techno9 Indonesia vs. Wira Global Solusi
Performance |
| Timeline |
| PT Techno9 Indonesia |
| Wira Global Solusi |
PT Techno9 and Wira Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Techno9 and Wira Global
The main advantage of trading using opposite PT Techno9 and Wira Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Techno9 position performs unexpectedly, Wira Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Wira Global will offset losses from the drop in Wira Global's long position.| PT Techno9 vs. Ace Hardware Indonesia | PT Techno9 vs. Garuda Metalindo Tbk | PT Techno9 vs. Lippo General Insurance | PT Techno9 vs. Pacific Strategic Financial |
| Wira Global vs. Trimegah Karya Pratama | Wira Global vs. Global Sukses Solusi | Wira Global vs. Jaya Swarasa Agung | Wira Global vs. RMK Energy PT |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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